- Kenya’s National Treasury has withdrawn Sh5 billion from the cash reserves at Central Bank of Kenya (CBK), only five months after it also took a dividend cheque from the banking regulator.
Kenya’s National Treasury has withdrawn Sh5 billion from the cash reserves at Central Bank of Kenya (CBK), only five months after it also took a dividend cheque from the banking regulator.
CBK announced on Wednesday that it had deposited the amount into the National Treasury account from its surplus funds, adding to the cash the government already received from it.
The fresh cash raises to Sh14.8 billion the amount the government has gotten from the lender of last resort in the last year.
The total includes a Sh2.5 billion dividend the state drew on its results for the year ended June 2020 and Sh7.3 billion it gained from cancelling the old Sh1,000 notes.
“The Central Bank of Kenya announces that on February 17, 2021, it transferred to the government Consolidated Fund Sh5 billion as an exceptional distribution from CBK’s General Reserve Fund in the current financial year 2020/21,” CBK said in a statement on Thursday.
The transfer was okayed by the CBK board arguing that Kenya was experiencing exceptional circumstances occasioned by the Covid-19 pandemic that has strained government’s funds.
Treasury CS Ukur Yatani revealed that the government’s ordinary revenue collection for the six months through December fell short of the Sh907.7 billion target it set by Sh107.6 billion.